Posted on May 07, 2014
Gold Spot Price Open: $1,308
Gold Spot Price Close: $1,291
Change in Gold Spot Price: -$17
Silver Spot Price Open: $19.69
Silver Spot Price Close: $19.37
Change in Silver Spot Price: -$0.32
Gold and silver both recorded significant losses on Wednesday in the wake of remarks made by Vladimir Putin and Janet Yellen. When all was said and done, gold lost about 17 dollars while silver was down by more than 30 cents. Now, gold is sitting below the $1,300 threshold while silver is rapidly approaching $19/ounce.
Before US markets opened, spot gold and silver were dealt a blow as Russian president Vladimir Putin said that he was willing to pursue peaceful measures to resolve the situation in Ukraine. While speaking to the Organization for Security and Cooperation in Europe, Putin also called upon pro-Russian rebels to refrain from following through with a planned referendum that would more than likely give Russia an even larger part of Ukrainian territory. Spot values almost immediately declined in the wake of Putin’s comments being made public.
As if Putin’s comments weren’t enough, Janet Yellen, when speaking to the Congressional Joint Economic Committee, maintained her positive outlook with regard to US economic growth throughout the duration of this year. What’s more, she also stated that interest rates are likely to remain low for the foreseeable future. Only a few weeks ago, investors widely believed that interest rates in the United States would be risen as early as next April. Now, it is more than likely that interest rates will not be risen until late 2015, at the earliest.
Tomorrow will see the entire investing world fixate their attention upon the ECB as they are scheduled to meet for their monthly policy meeting. Some investors are expecting to hear of possible monetary stimulus measures in order to combat widespread deflation concerns, but there is no way of knowing this for sure. What is for certain is that Mario Draghi’s post-meeting statement will be heavily scrutinized by both European and world investors.